International Paper Strategic Restructure: GCF Sale and Mill Closures
International Paper, a global leader in sustainable packaging, has unveiled a bold strategic restructureselling its Global Cellulose Fibers (GCF) unit and streamlining operations to enhance focus on core packaging solutions.
1. Sale of Global Cellulose Fibers (GCF)
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International Paper has agreed to sell its GCF business to American Industrial Partners (AIP) for $1.5 billion, plus preferred stock with an initial liquidation preference of $190 million.
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This division generated approximately $2.8 billion in revenue in 2024, employed 3,300 people globally, and operated nine manufacturing facilities.
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GCF specializes in absorbent fluff pulp used in products like diapers, feminine care, tissue, and specialty pulp for construction and coatings.
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The deal is expected to close by the end of 2025, pending regulatory approvals.
2. Mill Restructuring and Closures
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To sharpen its cost advantage and customer service, International Paper plans a $250 million investment to convert the #16 machine at the Riverdale mill in Selma, Alabama, to produce containerboard by Q3 2026.
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Concurrently, the company will permanently close several facilities:
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Savannah, GA containerboard mill and packaging plant
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Riceboro, GA containerboard mill and lumber operations
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All closures are set to complete by end-September 2025, affecting around 1,100 positions and reducing annual containerboard capacity by about 1 million tons.
3. Putting It All Together
International Paper’s strategic restructure redefines its business direction:
| Strategic Move | Purpose & Impact |
|---|---|
| Sell GCF division | Focuses business on core sustainable packaging solutions. |
| Invest in Riverdale mill | Enhances containerboard production capabilities. |
| Close Savannah & Riceboro sites | Reduces overcapacity; streamlines operations and lowers costs. |
These bold steps are intended to sharpen International Paper’s competitive positioning and operational efficiency.
Risk Disclaimer
This blog post is for informational and educational purposes only. It is not financial or investment advice. Readers are encouraged to consult professionals regarding strategic decisions or investments. Outcomes may vary due to market conditions, regulatory changes, and operational risks.
